After months of high-stakes negotiations, Greece claimed yesterday to have finalised a new €13.5 billion austerity package that will grant it an extra two years to meet its fiscal targets.

The deal should allow Greece to receive the next €31.5 billion (£25.5 billion) tranche of bailout money next month, saving it from bankruptcy and a disorderly exit from the euro.

The Government said that it would present the austerity package to Parliament next week to get it approved before the eurozone finance ministers summit on November 12, which is expected to approve the loan payment.